In recent days, the collective renewal of the post-sales rules for the poaching, shivering, fast-tracking and kyoto electric platform has led to a new round of optimization of the long-disputed “refunds only”. Currently, the platforms are consulting publicly on the revised proposal and “refund only” or will come to an end。
The economics of the era found that “freight insurance” had slowly disappeared before “refund only” adjustments had been optimized. Over the past year, there has been discussion about how "freight insurance has become less and less" and "freight insurance has been shut down" on social platforms such as little red book and weibo. Data from black cat complaints show that, as at 25 april, over 100,000 complaints directly referred to the unprovoked closure or restriction of freight insurance。
Behind this change is the double pressure on businesses and insurance companies. The high return rate of goods such as women's clothing, the high cost of freight insurance absorbs profits, and the shift of some businesses from “flow-to-flow” to “cost awakening” and the closure of freight insurance. At the same time, professional “sauers” have used false refunds to pay for freight charges, and some have even made up $1 million for eight months, which reduces the profitability of insurance companies。
The kandeh think tank expert and lawyer ban xianqing, the permanent law firm in shanghai, pointed out to the times that the platform, as a rule maker, needed to safeguard market equity and business interests. She suggested that the platform could work with insurance companies to optimize freight risk policies and balance the interests of merchants with those of consumers; implement differentiated cost-sharing based on commercial sales and return rates to reduce business pressure; strengthen freight risk regulation to prevent abuse and exploit loopholes; and strengthen consumer education to guide rational consumption and legitimate defence。
Figure source: diagram ideas
Over 100,000 complaints! Freight insurance is "lost."
The freight risk, which was once considered to be the “specify” of the electrician, is undergoing an industrial strategy adjustment。
In the recent past, a number of electric power platforms have been frequently dropped “freight risk invisibility” — some commodities have not offered options directly, some premiums have increased from $0. 5 to $5, “seven days without reason” are becoming expensive, and freight risk is playing the “disappeared” of the business circle。
From consumer feedback, changes in freight risk are evident. Ms. Hangzhou li (alias) who likes to buy online, revealed to the times that almost all purchases of clothing in previous years were subject to freight insurance, and that the traders who sell them now provide less and less freight insurance。
Data from the black cat complaints platform show that, as at 25 april, over 100,000 complaints were directly related to the unprovoked closure or restriction of freight insurance。
Figure source: diagram ideas
In addition to the general decline in freight risk insurance, consumers are also subjected to differential treatment by algorithm “labelling”. Ms. Lee indicated that her main account number was therefore more frequently returned and that freight risk was limited while the small number was used normally。
In guangzhou, one of the largest electric operators explained to the times that the number of returns, the preference of the class and even the length of the browsing influence the wind control rating. The dynamic assessment system is like an invisibility referee that divides consumers into “quality customers” and “risk users”. Such smart screenings would lead to differences, such as the same cashmere coat, where new users might be covered by full freight risk, while high-frequency refund users would have to pay for their own。
“closed freight insurance, the rate of return was reduced by 28 per cent and the conversion rate was only 3 per cent lost, and the `heavy test crossers' were accurately screened.” in guangzhou, li zhen (alias) is the director of the operator of a dresser。
Of course, not everyone is as lucky as li. From a commercial point of view, cost pressures are a key consideration in closing freight risk. The rate of return of women's clothing as a major area of return has remained high. A number of women electric shopkeepers have shown that the return rate of their shops has remained at around 50 per cent, sometimes up to 80 per cent, and that freight risk has seriously eroded profits. Many businesses have begun to move from “flow-to-flow” to “cost awakening” to closing freight insurance。
The large number of garment traders, alias, indicated to the times that the increase in the return rate had resulted in an increase of $8 per individual return cost, and that the delivery of freight risk would consume half of the profits. However, when freight insurance was withdrawn, the conversion rate fell directly by 15 per cent, and continued insurance coverage was provided to insurance companies, which eventually closed on balance. There are also new traders in the shivering electric operators who indicate to the times bank that, at the start of the shop, the refund or freight insurance was set as one of the requirements for a shaking shop, as the introduction of freight insurance would have little impact on commodity conversion rates if the price of a single passenger was below forty-fifty。
The disappearance of freight insurance has had an impact on consumer shopping. Consumers who are accustomed to “unjustified” return now have a significant increase in the cost of return. Consumers have stated: “it was inappropriate to buy clothes before, but it was a freight risk. It will take half a day to buy it, and it will not be cost-effective if the goods are returned.”
It's been a million dollars for eight months
Freight insurance, originally a heating design for the electrician market. The intention was to remove consumer network concerns about the cost of returning goods and to lower the return threshold, thereby facilitating the conclusion of transactions. However, this seemingly good market has gradually given rise to grey areas。
In recent years, the “freight insurance wool” cases have surfaced and even formed a grey chain of industries, and many local public security departments have been able to uncover cases of fraud in the payment of freight insurance claims。
The kandeh think tank expert, the permanent lawyer of the shanghai city of light, explained to the times that “freight insurance wool” usually refers to the use by consumers of freight insurance services provided by electric power platforms to earn a difference in the price by obtaining an amount higher than the actual refund of freight charges by means of intentional or false refunds. Such acts may by their nature constitute fraud or abuse of platform rules。
Before, two of the people involved in the case in jiangxi county used a number of virtual accounts to direct their own performance of the "left hand to right hand": they placed large items, such as emulsive mattresses, in their own internet store, placed false account numbers and purchased high-priced freight insurance, and forged returns through gift networks, with a cash of over 1 million over eight months. Eventually, the case, which was specifically for the fraudulent payment of freight charges, was solved by the public security authorities and the alarm bells were sounded for the wool party。
This is also the case in the senior garment shop. She revealed to the times that the shop had encountered “freight insurance professional players” and that, using multiple accounts numbers and several similar addresses, it had returned goods as many as 348 times throughout the year, for which the insurance company had applied over $4,200 in freight charges. “sometimes they think they're gonna blow up the bill, but they're all freight insurance.”
The behaviour of the wool party has not only caused the business community to suffer but has also increased the pressure on insurance companies to pay compensation. The insurance industry has revealed that the return rate of some electrical platforms has exceeded 30 per cent, and the return rate of some popular items such as women's clothes and makeup is even higher. In the event of a high rate of payment, the insurance company, in order to avoid losses, would have to opt for an upward adjustment of the freight rate or a direct exit from the market。
For example, in its 2024 annual report, the public security network, an earlier participant in freight insurance operations, showed that the total cost of a digital ecological premium amounted to $16,197 million, of which the total cost of a refunded freight premium amounted to $8. 74 billion, an increase of 30. 6 per cent over the same period, contributing nearly 54 per cent of the total cost of a digital ecological premium. However, the combined ecological cost was as high as 99. 7 per cent, while the insured profit margin was only 0. 3 per cent, with lower profitability. According to industry sources, this is directly related to the high-frequency, high-risk recovery of freight charges。
The deputy secretary-general of the china insurance institute of the beijing university of commerce and industry, song jingjun, pointed out to the times bank that, in addition to the increased strike by the electric power company platform, insurance companies could resolve the problem by way of compensation. He analysed the vulnerability of consumers to arbitrage arising from the mismatch between the express offer and the insurance pricing when they freely chose the delivery. It is recommended that the regulation of large-scale refunds be strengthened through the uniform procurement of third-party logistics services by insurance companies or through electric power platforms in order to avoid such risks。
In the face of the market situation, self-rehabilitation mechanisms have been put in place. Most treasure hunters choose to close freight risk and instead provide return treasures to reduce the cost of return; some offer consumers the option of buying their own freight risk. Consumers, however, indicate that the current level of premium and compensation for freight insurance is close, and that its risk hedge has significantly diminished。
